How to manage your business cashflow.
The number 1 stressor for small business and medium business in Australia is cashflow. Without a strong flow of cash, we are always ‘under the pump’. The wage bill rolls around too quick, the phone is ringing with creditors and then there’s the BAS and super to pay too.
So, what’s going on? It’s all about negotiating. Having the conversations that need to be had. Let’s break it down.
It all starts with buying well. Never pay too much (most things are negotiable). Never pay too soon (ask for terms). Never buy more than you need (save for situations where the economic order quantity tells you that you should). It’s all pretty simple stuff but when was the last time you focused on it?
This is the mirror image of buying well! Never underprice your goods or services (most things are negotiable). Never be overly generous with terms (the market may dictate norms for your industry but you are not bound by them). Try to bring forward your sales (ever bought a 20 pack of toilet roll?).
By now, it will have become clear that cashflow is a zero-sum game! The cash has to be somewhere. It’s either in their pocket, or yours. The ‘winner’ of the game is the person that collects the most cash. And that’s a function of how well you negotiate.
You can be the best negotiator on the ‘field’ but without discipline it’s all for nought.
Contact us on 1300 656 141 to improve your cashflow.